Economics Questions For SBI PO Exam

Dear readers, here we are providing you a some Economics questions which can be useful in your upcoming SBI PO exam.

1.    Which of the following measures should
be taken when an economy is going through inflationary pressures?
A. The Direct taxes should
increased
B. The Interest rate
should be reduced
C. The public spending
should be increased
Select the correct answer from
the options given below
(1) Only A                         (2)
Only B
(3) Only B & C                  (4)
Only A & B

2.    National Income is generated from:
(1) Any money making
activity
(2) Any labourios activity
(3) Any profit-making
activity
(4) Any productive
3.    The term stagflation refers to a
situation where:
(1) Growth has no relation
with the change in prices
(2) Rate of Growth and
Prices both are decreasing
(3)  Rate of Growth is faster than the rate of prices
increase
(4) Rate of Growth is slower
than the rate of prices increase
4.    Gross Domestic Product is defined as
the value of all:
(1) Goods produced in an economy
in a year
(2) Goods and services produced
in an economy in a year
(3) Final Goods produced
in an economy in a year
(4) Final Goods and
services produced in an economy in a year
5.    The Draft of the Five Year Plans in
India is approved by the:
(1) National Development
Council
(2) Planning Commission
(3) National Productivity
Council
(4) Ministry of Finance
6.    Deficit financing implies-
(1) Printing new currency notes
(2) Replacing new currency with worn out
currency
(3) Public revenue in excess of public
expenditure
(4) Public expenditure in excess of
public revenue
7.    Depreciation means:
(1) Closure of a plant due to lockout
(2) Closure of a plant due to labor
trouble
(3) Loss of equipment over time due to
wear tear
(4) Destruction of plant in a fire
accident
8.    During periods of Inflation, tax rates
should:
(1) Increase
(2) Decrease
(3) Remain Constant
(4) Fluctuate
9.    Devaluation of a currency means
(1) reduction in the value
of a currency vis-a-vis major internationally traded currencies
(2) permitting the
currency to seek its worth in the international market
(3) fixing the value of
the currency in conjunction with the movement in the value of a basket of
pre-determined currencies
(4) fixing the value of
currency in multilateral consultation with the IMF, the World Bank and major
trading partners
10.  If the cash reserve ratio is lowered
by the RBI, its impact on credit creation will be to
(1) increase it
(2) decrease it
(3) no impact
(4) None of the above


Answers:
1
1
6
4
2
1
7
3
3
4
8
1
4
4
9
1
5
1
10
1